2026-01-18 20:30:46

Government spending often becomes a key driver of inflation. When public sector expenditure spirals without corresponding revenue controls, the purchasing power of currency gets eroded. This dynamic matters for anyone holding digital assets—excessive fiscal expansion historically correlates with monetary debasement and pushes investors toward inflation hedges, including crypto.

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

12 Likes

Reward
12
4
Repost
Share

Comment

0/400

FundingMartyr

· 4h ago

Here comes that inflation rhetoric again, sounding nice but what’s the reality? The real cause of rising prices is the central bank’s excessive money printing; government spending is just the scapegoat... But then again, this is exactly why we all in on crypto—fiat is really losing its value.

View OriginalReply0

LayerZeroHero

· 4h ago

It has been proven that the correlation between fiscal expansion and currency devaluation can indeed be verified using historical data — which is also why cross-chain asset flows have become more active in the past two years, as the algorithm can perceive larger risk arbitrage opportunities.

View OriginalReply0

FUDwatcher

· 4h ago

Now the government is recklessly spending money, and our money will depreciate. That's why we need to stock up on some coins.

View OriginalReply0

LadderToolGuy

· 4h ago

The government spends money extravagantly, and the wallets of ordinary people will shrink. We've seen this trick too many times... So people in the crypto circle are hoarding Bitcoin. To put it simply, they're betting that the government will continue to be corrupt.

View OriginalReply0